Quiet trading session keeps USD index unchanged

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar         1.2450-1.2550

Euro                 1.5000-1.5100

Sterling            1.7300-1.7400

The US Dollar Index is marginally weaker in a very quiet overnight session. The Euro jumped a little recovering somewhat overnight after yesterday's announcement that the ECB will keep its stimulus program at current levels until its sees more data on the economy. In the US, markets were lower yesterday on the news that the Biden administration plans to increase the capital gains tax on the wealthiest Americans to 39.6% to help pay for his social agenda plan. Stocks and the Dollar have settled down this morning but I think I was able to hear the roar from the Republican party all the way up here in Ontario when this was announced. Look for lots of push back in Congress to this plan which may rile markets in the coming months.

USD.CAD opens the day below the 1.2500 (0.8000) level again this morning so while it has not been really able to extend any further gains after the BOC meeting it is positive to note that it has been able so far to maintain its current levels against most currencies. We do get some secondary trade data this morning so signs of positive growth in trade may give the Loonie another push and reinforce the Bank of Canada's view that the economy is recovering.